Create archive from folder in Thunar on XFCE

OK this should be easy as Thunar comes with the thunar-archive-plugin installed on Debian Wheezy, which I'm using, but when you right click on a folder and select the Create archive option, you get a directory menu, and if you select the directory you're already in, the plugin will open the folder you want to archive, instead of creating an archive in the same directory. This seems to be a bug.

Interestingly, in Crunchbang (which uses the same plugin version, but from its own repository) if you do the same thing, the expected result happens: an archive of the folder and contents is created in the same directory. I suppose a patch must have been applied in Crunchbang.

There is an alternative method, which I found on XFCE Docs: add a custom action.

Name: Create tar.gz from folder
Command: tar czvf %n.tar.gz %n
File pattern: *
Appears if selection contains: Directories